Investors Are in Good Hands with Insurance Stocks

Sandy was the second-costliest hurricane in U.S. history, yet it didn't sink insurance stocks. In fact, since the end of October when the storm cleared Ace Limited (ticker: ACE) is up 13%, Travelers (TRV) 19% and Allstate (ALL) 23%, versus 10% for the Standard & Poor's 500 index.

And more gains may be on the way: The three are poised to climb another 12% to 18%, according to Credit Suisse analyst Michael Zaremski.